tv Bloomberg Surveillance Bloomberg September 29, 2014 6:00am-8:01am EDT
ascendant, and it is a new india. modi visits the white house. from our world headquarters in new york, it is monday, september 29. i am tom keene. joining me, scarlet fu and adam johnson. let's get you to a monday morning brief with adam. >> the protests are pretty powerful images. we will go there and see what is driving that. finds's 10 year yield above 10% for the first time since april. 10%. >> i agree, a big deal with the huge international back and forth. >> a bunch of the economic data in the u.s. personal income and spending, and the pce deflator. >> really beginning to shape up at the end of the third quarter. it has crept up on us, and we
are getting more data with the jobs report friday. this is the beginning of a lot of good data. >> 10:00, pending home sales. home stuff has been squishy, back and forth the past few months. you get a good month, a bad month. pending home sales at 10:00. obama is welcoming india's prime minister and 8:30. what is curious is he was central -- he was at central park this weekend for that big concert and moved a lot of people. >> he is like a rockstar. >> tom, you were way ahead when he got elected. -- you saids is this matters. >> that is where i got the idea from. hostingesident obama is prime minister modi at the white house, we have mr. prudent hosting the -- mr. putin hosting
netanyahu atnjamin the u.n., addressing the u.n. today. 1 launches in china. >> is that a big deal? >> it is because it is the first time they are allowing it to be sold legally great now you are allowed to do it. >> standing out in front of the xbox store. let's do a data check. equities, bonds, currencies, commodities. eight. at negative currencies, the euro is weaker, the ruble is weaker, the yen is weaker. 93.21 onons at american crude. , 14.85. dean kern it will join us on volatility.
huge deal is this continued weakness in russian ruble. spoke with the foreign minister of russia. we will talk about that on "bloomberg surveillance." this morning. this is a non-chart. versus hong kong-dollar the yuan. the hong kong dollar is penned -- is pegged as a huge currency. >> add to the fact that the hong kong dollar had been weakening in the months or the weeks ahead of the protests over the weekend. you had a setup where the macro fundamentals were not so great. >> here is that long-term renminbi. some of the dynamics of economic tensions within hong kong. >> and you circle that one area. >> that was 2005. >> 2005, when the u.n. began to
think sending, when the chinese government loosened some controls. >> we have scoured the newspapers this morning. here is our front page with scarlet. inpro-democracy protests hong kong turned violent over the weekend. thousands of protesters were fighting with police. ins is a live shot of folks not central but outside central businesses. this is 6:00 p.m. >> half a mile, one mile? >> not even that far away. fighting withe police, police fired tear gas and -- tear gas into the crowd. friday tots began control the leadership election. just in the afternoon, the chief executive canceled the annual fireworks display on october 1, founding the people's republic of china. >> i want to do a massive
showstopping shout out to scarlet fu, who was months ahead on these protests. way out in front. >> we saw the tension start to rise. >> i was like, yeah, yeah. you don't know what you are talking about. >> let's go live to hong kong -- stocks dropping 2% overnight, 6.5% in the past weeks. they speak for themselves. what changed in the past 24 hours? >> it was extraordinary. i was here 24 hours ago. it remains peaceful, but the number of people are nothing like we are seeing at the moment. of hong kong,al the chief executive, has stepped down. yesterday.w clashes
a bit of a low this morning. -- a bit of a lull this morning. >> rish? >> he dropped out there. >> understandable. the images speak for themselves there. to be at some point a military response? as yet we have not seen any confirmed reports of that. >> i wonder, too, how much the -- up of the protests have you are back on the line with us. most of the protesters are said to be in their 20's. has it extended beyond that, to the business community? generally a student-led
demonstration taking place. the kong was witness to 1960's when they were procommunist during the cultural revolution. but this is on the edges of admiralty, gaining access to the business of central has been closed for the time being. p.m. arrived around 1:00 as soon as that happened, crowds started to flood in. miles long.two who knows how many people are taking place in this right now? -- are taking part in this right now? 41 people were injured as of early, early this morning. that is what we have at the moment. the "occupye is central with love and peace" contest.
2%,et wise, down around closed at 1.9% at the moment a couple of hours ago. that is what we have really. it is happening on the other side of the harbor, and the causeway bay as well. this is extending down to the .olicy that came out rishaad, thank you, we are starting to lose you. rishaad salamat joining us. we are starting to lose his signal. >> we will continue to monitor those elements. our second front-page story, president obama is saying u.s. intelligence underestimated gains by the islamic state in syria. he talked about it last night on
"60 minutes." >> isil represents a hybrid is not just a terrorist -- a terrorist network, but one with territorial ambitions. this is not america against isil. this is america leading the international community to assist a country with whom we have an international security partnership with to ensure they can take care of their business. >> should mention john boehner said the u.s. will have no choice but to put american forces on the ground if the allies cannot get the job done. >> there is a front-page this anding -- syria-ukraine hong kong. businesssts in the district of hong kong are an example of another world order. you were in hong kong two weeks ago, and you spoke to the hong kong leadership.
was there any perception that they would see protests like this? left, i think they really the impression to me that a very tough response was likely from the government. they were going to block off major streets. this is new news. the impact on corporate earnings is something i will look at carefully to see how far this goes. >> it all have our beliefs, our myths, are stereotypes with hong kong. scarlet, you worked there for years with bloomberg news. with the companies in the business and the finance of hong kong, how has it changed in five years? >> it is much more chinese influenced, much more mainland influenced. for them thatm they have to work out over time. we are seeing -- ing honghey shanghai kong?
>> it is possible, we will not know for a while. >> we also want to welcome in lisa. a lot of people say that this was accelerated because of bill gross' decision to leave pimco. is there credence in that? >> there is credence, but his announcement to leave pimco definitely move the market friday. for ft for janice -- janus. this is a person who makes more money than any under individual. >> was it clear that blackrock was going to hire mr. gross echo >> i have no idea. i am on the equities side. >> the bond market is a place where managing money can have a big influence, and it is not as easy to trade in the bond market and the stock market. you cannot get in and out in size without other people
noticing. and pimco -- >> and pimco's total return fund made it difficult for bill gross to move. i want to get the company news in the meantime. we will start with softbank. in talks to dry -- to buy dreamworks animation. the film studio, turning it into a mini walt disney. softbank senior executives have not formerly discussed the potential acquisition. air france pilots ending their two-week strike. they plan a full schedule as the -- as they try -- pilots began striking on september 15. the walkout has cost the airline about $25 million per day. apple accused of prospering from a legal tax deals in ireland. "the financial times" says the european commission has found a tech company benefited from illicit state aid. >> shocking.
nigel travis at 11:00 a.m. on his transnational project. this is "bloomberg surveillance ." good morning, everyone. >> let's talk about the bond market. pimco's tom brack -- top brass is reassuring investors that it is business as usual after the surprise exit of cofounder and chief investment officer bill gross. lisa abramowicz is with us for this hour. powerfulne man get so in this market? >> dismantled a more than any, is emblematic of how much the on manet house grown -- this more than any is emblematic of how much the bond market has grown. well in anone so intrastate cycle where
interstates were coming down, and now you -- , i think to both of you, it speaks of the end of the total return era. we have had a time of coupon plus capital gains, and mr. gross and others all of a sudden had to fight for the coupon. do i have that right, lisa? >> absolutely. of bond returns has been negative. the only thing keeping bond returns a float for the past few months is coupon payments. this is a very tough market for bonds fund managers to navigate. it makes it more difficult when you are managing a $22 billion fund that has to maneuver quickly. they cannot go around making -- betting on one particular credit going to helpt is
their performance. you have to move in size. >> it is difficult to move the needle. that being the case, bill gros'' total return fund will no longer be under his management and he will be moving over to janus. what does that say about the size of these bond funds? he was having so much difficulty generating returns with that massive fund. >> a lot of firms have close bond funds over the past few years. fund managersond have said, listen, when bond funds get too big, you become the market. if you want to make a trade, every trader knows about the trade you are going to make. believe hart, do you the size is problematic for fixed income funds? >> i think so. there is a direct trade-off between performance and size. woody's, -- in neck even more so in equities.
now that he is managing the unconstrained bond fund, what can he do at janus that he could not do at pimco? >> first of all, there will be less money, which will be a benefit to him. >> it is a point of contention -- >> the headline in "the wall street journal," "billions fly out the door." pimco, 10 billion dollars is a drop in the bucket. will this disrupt -- will this be a disruption? yield 10-year, treasury --yes,mexican bonds definitely move the needle. >> good to have lisa abramowicz
"india andter of -- the u.s. have a fundamental stake in each other's success. i am confident that the destiny in a are -- in our two nations, the marker see is the greatest source of renewable and offers the best opportunity for the human soul to flourish." front on theut capital. nigel hart is with us. i think most of our viewers are unaware of the mega bull market that india has been. can it continue? >> it can in the long run. elected one of the most capitalistic prime minister's globally. >> a complete repudiation of gandhi. with a that many people poor infrastructure, there is a huge scope for investment now.
he should be welcomed with two hands and say let's do business. >> there is mr. modi speaking at madison square garden. >> a real rock star in new york right now. nigel, here is a question. i understand the opportunity, but much of interesting in india is still a closed entity. there are walls erected around foreign capital not only going in, but being able to come out, the way china was 10 years ago. how do you navigate that? >> you have to pick companies well, focus on valuation and price and picture industries well. some of the industries we look at our in the motor space, 60% sharing market commercial vehicles. with the political change, we
could see a huge growth opportunity in the next three to five years. >> how much momentum is there leading up to his election and going forward -- there is a lot of inequality just generally. is there potential? >> there is a lot of potential. the market has moved up very quickly. they will want to seek opportunity carefully. >> tread carefully in india. that is the theme right now. our twitter question of the day is, what is the most underestimated global conflict? is it the hong kong protest? tweet us @bsurveillance. ♪
>> good morning, everyone. "bloomberg surveillance." i'm tom keene. let's get to top headlines with adam johnson. >> more travel misery for chicago. another 550 flights were canceled yesterday at the city's two international airports. eggs are expected to improve today. the faa has said that it has replaced a computer center at a nearby hub. and a third straight ryder cup win for europe, defeating the americans by the widest margin since 2008. europe has now one bank six of
the last seven that has now won six of the last seven. the latest film starring denzel washington tops the box office. it is called "the equalizer," a sony films release. runner" fell to second place. those are top headlines. >> i have not heard of any of those. >> i was going to say, i have not heard any of them. it is not summertime, i don't go to movies. it is the golden age of watching everything you want on your iphone. >> futures are soggy this morning. $17,113.losing it the ruble is front and center. inontinued uncertainty
eastern ukraine, reports of soldiers killed in the ukraine. a few more overnight. the quiet is over, speaking of ukraine. after a stunning decline in volatility, september has brought a pulse to the street. the street loves agitation. that is what incumbent bonuses are made of, but with the fed in zero bond mode, can any of the observed volatility continued? dean joins us right now. back into 20. is the new volatility sustainable? >> it is low and for some good reasons despite what we see in the rest of the world. as you point to the fed, other central banks dominate risk -- to to unhealthy degree an unhealthy degree at this point. there is plenty of risks in the world to worry about.
>> what i noticed over thursday and friday was the continued disincentive asian -- disincentive over commodities. >> what we saw in late august and early september was some movement underneath the surface that you might not see if you are an equity investor. x was up a tiny bit. the votesaw in europe, around scotland's secession, a lot there showing up in the space of currency volatility as well. nigel, is volatility good for you? >> it leads to opportunity, valuation mismatch. dollar will have an impact on u.s. corporate earnings with the multinationals . >> i am glad you mentioned
corporate earnings because that is the one place we do not have volatility. every time markets are down 150 points, the next day they come right back. >> corporate usa does a great meetinganaging, investor expectations. are still and large buying bonds, and while they stop, they plan to keep rates low for an extended period of time after that. >> even with the volatility we are experiencing, really low, it seems all around there is not that much volatility in response to quite significant developments. what could really cause volatility to really dramatically increased at this point? >> one of our concerns is that the fed has these economic policies trying to reinflate the economy, but they are so targeted toward financial assets. the leverage in the system could
continue to build up. lisa, in your, world, on the high-yield market, --ces down, yields up three prices down, yields up. >> high yields have soft patches for a while. i am not willing to write them off yet because there is so much money out there. at some point there will be a floor. >> a lot of people have said there is a lot of price -- a lack of price discovery in fixed income. nigel, is that the case in equities? me, global opportunities means i can go anywhere in the world, so i just focus on where i find -- >> could you go to russia? >> i do not care to right now. it is too volatile and uncertain.
a stalematea as long-term. >> does that mean europe gets caught up in that as well? >> it has. therein lies the opportunity, whereas the u.s., the gap between valuations in the u.s. and in europe is quite wide. >> we were talking about high-yield, and i did not realize until i pulled up the high-yield chart. it is frightening. came back up,we and we have just cratered. >> is it ill gross' fault? >> no, this is concerns that if ratesights -- if the hikes sooner, if the winds of dollars are being pulled out of neutral funds, there is skittishness there. >> what is the difference with 15 and if it is
five points higher? >> i think there is pretty good action between these cross asset class movements. high-yield going down, thes vix going up -- high-yield is an investor -- high-yield is an area where investors go too long. folks have accumulated positions for a long putter of time, and the liquidity that undermines the market may be challenged for people to get out. >> we like volatility. we thank you for making it. curnutt. not -- dean notpple's iphone 6 officially available in china, but that has not stopped consumers from getting their fix. ♪
supportedth sunglasses and wedding rings -- excuse me exhalation point just reading up on the wedding. good morning, everyone. it is "bloomberg surveillance." i was distracted by george. in washington, they greet the prime minister of india today. what an important meeting. and the state dinner is tonight. that is a beautiful shot. it is time for our single best chart. this is not on george? >> it is not. we are going to go around the world. we know the chinese government has not yet approved the sale of the iphone 6 on the mainland, but dealers in hong kong and freelancers around the world are expecting a windfall from selling smuggled iphone 6's in
china. they did get it initially with the 16 gigabit iphone 6 selling for the equivalent of $2900. you can see that it has come down because there has been an influx of phones for resale. by day six, the last data point, .he price had fallen why access the chinese yuan? u.s. did translate it into dollars. analysts estimate up to 5 million iphones could have been smuggled into china. here is an example. >> so, to be clear, i have seen people on 63rd street transferring ipads to a car. they have to sneak him into the airports. >> they are wrapping them around
themselves, around their waist. in a is an editorial chinese newspaper saying all of this, the frenzy over the iphones, is charles and -- is causing china to lose face. they get through u.s. security to get out of the country? -- you put put it on it in your bag and go. >> and then on the airplane you wrap it around yourself. on an at&tnot network. >> this speaks volumes as to what mr. cook is doing at apple. >> yes, you cannot manufacture that kind of enthusiasm in advertising and marketing. we are not doing george clooney yet. getting all excited. >> you are. photo -- aer three protester getting maced by hong
kong police, thousands taking over a road in hong kong. the pro-democracy rally, as evidenced by this photo, is taking a violent turn. >> and it may get worse before it gets better because october 1 is the anniversary of the founding of the people's republic of china. typically that is a holiday in china and they usually have a big fireworks display. >> and when we had rishaad salamat on earlier, it was quiet, but you really wonder as they go into their evening -- >> it is almost 7:00 p.m. there. and this is not in the central business district. this is on the way to the central business district, which is where the protesters have vowed to disrupt. photo -- wer two are going to move to turkey where we cannot say it is a protest of a different sort, but it is a standoff between the kurds. military and
syrian kurds are trying to get into turkey because of what is happening in syria. >> nigel hart is with us from blackrock. you you change your investment perspective on turkey because what we are seeing here, and is there a real debate about kurdistan? >> let's see how long it goes on for. turkey is not a market we are focused on. there are cheap stocks there, volatility is very high and it makes it hard to see through. >> are turkish bonds a benchmark of any sort? >> people look at turkish bonds because they have had to raise interest rates to attract money and lenders. people look at it, but it is volatile. >> and the 10-year yield is above 10% for the first time in april. >> in a world where you cannot get that kind of the yield. >> if i get right to the terminal to wb for world bonds,
1.31%.is at all the problems in portugal, it is 3.1%. >> to set up our next photo, may i state that in many years of bloomberg i have never seen a ingle individual so changed in speaking to charlie rose? >> george clooney. >> no one, no one. rockstar. >> i believe it was what, scarlet, a romantic ceremony over the weekend? >> the civil ceremony will take place today at a 16th century palace. he is off the market. as is the lovely new mrs.
clooney. a live picture, by the way. >> to their great credit, they are visible on this. it was not like a secret. >> they did not try to hide anything. >> they were in a gondola in venice, and he was putting film over his shoulder, drifting the film. marriage rates plunge because of george clooney doing the deed . >> was bill gross invited to the wedding? >> he provided bonds for the new fund. >> lisa, thank you for joining us. >> let's get the twitter question in right now. @bsurveillance. what is the most underestimated global outlet? my answer.
>> this is "bloomberg surveillance." scarlet fu here with tom keene and adam johnson. let's get you top headlines. new u.s. airstrikes in syria targeting islamic state oil assets. this comes as the u.s. coalition expanded effort to aid the bits each syrian kurds. at least 31 hikers are dead after a volcano erupted in central japan. authorities are still recovering remains from around the crater. the smoke had billowed from the volcano since the eruption, hampering rescue and recovery operations. russia's foreign minister says economic century -- economic sanctions-- economic
-- olivia sterns ask about the project in an interview with foreign minister surrogate lavrov. >> we will do it on our own. necessarytract the technology and different partners who do not have limitations on cooperation. ceo, speakinge with ryan chilcote. those are top headlines. >> i said it was a state dinner for prime minister modi. it is not. he is here for five days. he has lunch at the state department and will meet with secretary clinton privately, but this is a private dinner at the white house. >> a state dinner becomes a steak dinner. >> i am not even willing to go to "official" on this dinner. intimate or private is the phrase being used. >> thank you for that correction. >> exxon rose left drilling
sanctions. this is curious. guest would be here while the u.n. effectively shut him out. say -- i am not sure that the u.n. effectively shut him out a booklet. there is very little daylight between vladimir putin and surrogate lavrov -- and sergei lavrov. this was definitely a man talking tough. he sat down after his speech at the u.n. general assembly and i asked him about the sanctions, specifically about the exxon project being put on ice. >> they are not sure that this will be put on ice. substitutions. there might be some delays, but
we are not going to wait until the big brother changes his mind. the economy is not in very good shape, but these things happen. recession happens not only in russia but in other countries as well. >> he says recessions happen. it is hard to imagine a western foreign minister acknowledging that recessions happen. >> big brother changes. >> is that just the economy or is it muscovites not enable to get there mozzarella. i am interested in the carry-on effect of what we hear from the foreign minister, or from mr. putin. how does it change investment in the czech republic, the baltic states, in eastern europe? >> the sanctions are long-lasting and their impact takes time as well to be effective. let's see how it plays out over the winter. i have nothing invested in --
>> from where you sit, are they in recession? >> is russia in recession? slowed arope has little bit. >> this is the backstory last week as we went into thursday and friday, the commodity rollover. stunning. stunning on the charts. >> not just that. i like the fact that surrogate -- ov -- that lavrov >> if they are trying to show that they do not need to be dependent on the west is russia in a recession? not technically right now. the foreign finance minister also says that russia will be in recession next year, and many people are very worried. you have to remember this is state-sponsored capitalism. .his is kremlin incorporated they will step in and subsidize and compensate any companies impacted by the sanctions, just as they have already done with rosneft, already receiving $40
billion in financing. lavrov says if we have to reorient funds, we will. was saidy remember, it it weaken a half ago that russia was not a superpower but a regional power. know -- you stans. conference of the you soia sterns, thank much. nigel, thank you so much for your perspective. what a news flow. x market.k at the fore the rubel leads the way. statistic.ow that is a linear function. is stronger. i put dollar hong kong there, which is a bit of humor this morning. to the right.ed
>> pierce protests in hong kong extent into the working week. how will beijing respond? the u.s. dollar is ascendant. new india. good morning, everyone. this is "bloomberg surveillance." is monday. i'm tom keene. joining me, scarlet fu and adam johnson. richard haas joins us. .r. ezekiel emanuel we get to our morning brief. >> overnight, global stocks falling. hong kong turned violent. that is one of the key stories. the 10 year yield rises for the first time since april. the pce.
10:00, we have pending home sales. president obama welcoming narendra modi to the white house from india. bag -- vladimir putin is hosting the caspian summit. >> the council on foreign relations. a shameless plug. [laughter] we do a data check with no shameless plug. dollar ascendant is all you need to know. the ruble. we are on a 40 ruble per dollar watch. >> new airstrikes hit syria targeting islamic state oil assets.
coalition extends a separate effort to aid syrian kurds. india's prime minister says his nation's economy is ready to roll. he said india is taking steps to boost growth, including easing visa laws. pro-democracy protests in hong kong turned chaotic. thousands of protesters demanding free elections clashed with police. said itg's government has pulled back anti-riot police. dozens of businesses in the business district are closed. >> in the last hour and a half, more headlines out of ukraine. >> a lot of flashpoints right now. a lot of flashpoints.
expect the unexpected. china protests are expected. the pro-democracy protests in hong kong were huge. and violent. a challenge for beijing and a challenge for washington. richard haas is with the council of foreign relations. 's with emanuel university of pennsylvania. it gentlemen, honored to have both of you here. protests next to the three proudest or zen hong kong. -- prada stores in hong kong. under the current leadership, there is not a lot of scope for political reform, much less this political activism. >> what you are beginning to see is the tightening. they cannot allow hong kong to set precedent. >> that one person, that pivot
point between hong kong and beijing. who is the leadership now in hong kong? the chief executive of hong kong. his hands are tied. beijing wants to keep control over who was allowed to run in 2017. the people of hong kong want more real democracy. there is a tension. i don't think the people of hong kong are going to get what they want. >> i want to bring in the morning must-read. preserve theshould hong kong business community. the business communicate no longer remain silent -- community can no longer remain silent.
is the business community pushing more into being vocal against the government? theyre is the problem face. hong kong plays much less of a vital role in china today than it did 20 or 30 years ago. it has been eclipsed by the general opening up of the chinese economy. i go to harvard with a wonderful idea 15 years ago. in theistics transnational interdependency. we get off the airplane routinely in hong kong like we get off in los angeles. those rules are changing. , they certainly want to keep control. they have always maintained there was a difference between opening up for economics and opening up for politics.
this is an attempt to rein in politics, but keep up free economics. that is what they have said they wanted to do all along. >> when i was in shanghai about two years ago, a number of residents told me that hong kong does not matter anymore. they were honest about it. >> we have heard this for years. >> that is the reality. if you look at the share of gdp generated out of hong kong, it has shrunk dramatically compared to where it was 10-20 years ago. --was no longer the window is no longer the window for the chinese open markets. there is a fundamental tension in the society when you want the benefits of economic opening, but you don't want the political consequences. >> how many years were you in hong kong? >> eight years. [laughter] it has been a long time. >> you have never seen protests
like this. >> never like this. you definitely saw people gather square tienamin anniversary. >> i say i have been to the you have cost the harbor. will feel this engaged from the government. the inequality gap is widening. hill disengaged -- they feel disengaged from the government. the inequality gap is widening. >> it is a real dilemma. you don't want this to get out of hand. this year is the 25th anniversary of tiananmen square. they do not want to have images
like the previous leadership had. how to deal with this? >> look at these images now. this is in some ways more potent than what we saw with the tanks. there is smoke. is that a concern? been used.r gas has they are trying to keep the people's liberation army out of it. leadershiphe chinese do if they cannot contain this? they have to make sure it does not continue to escalate. >> ambassador, you have been way out front on concerns. respond tomascus what we have seen last week? >> they will complain a little bit about what we have done without their permission. the dangerous thing is if they exploit it. try to fill any
spaces that are opened up by airstrikes. we don't want to do this to benefit the assad regime. focusing on syria with the russians is an impossibility, right? >> it is not an impossibility. you talked about a reset in the u.s.-russian relationship. why not sit down and talk with the russians about what is going on? it may be a full's errand. why not explore? the last thing they want is to see isis on the march. russia is a potential limited partner. >> what if the conversation is really just russia trying to get closer to the regime of bashar al-assad. >> if russia says that, then we will say no. withan't we begin to work
kurds in syria the way we are working with the kurds in iraq? we need people on the ground. this is the achilles heel of the american approach to syria. >> the russians also have a lot of influence with assad. that would be helpful. >> the two countries with the most influence our iran and russia. not exactly the normal diplomatic partners. has the playbook changed? >> i don't know what is happening. when i was there, the foreign come a we were at a conference last weekend and richard said, your choices are between bad and worse. upvitably, this ends dominating whatever anyone is thinking about. who are onthe people the chief of staff and his team. they end up spending all of their time on foreign affairs
fallout at pimco followings the departure of bill gross. $10 billion have been withdrawn from the firm since bill gross announced his leaving. the vast majority of clients will remain with the company, there is confidence. talks to buy dreamworks animation. bys is an effort marked uneven box office results. apple is accused of prospering from illegal deals and ireland. the tech company benefited from illicit state aid after striking backward deals. apple could be headed for a record fine. >> very good. it is not fiction. ebola took a turn for the worse the september. many have been critical of the
united states response. none more than easy keeley manual. -- ezekiel emanuel. all of us got this wrong on ebola. >> in august, when it first started or first was being reported, it started much earlier in the year, we thought inwould burn out like it did 1976 in all the previous cases and we thought it would be contained and limited. betweenn the border three countries this time. in urban areas. with heavy transport area did it straight -- -- with heavy transport. it spread much more rapidly than anybody predicted. for ebola, you don't need sex to transmit it. it does happen by bodily fluids, just like hiv.
it is not aerosolized. it also kills much more rapidly than hiv. it is not the numbers. it is the length of time. the other thing, and this situation one of the big problems is how people handle dead bodies and the fluids because they are super concentrated with the virus. this is a major reason that it has continued to spread. these countries are among the least developed, broken down health systems without basics things like gloves and masks. gloves, masks, personnel are the key items. we have to re-the basics over and over again. >> the head of the world health organization, margaret chan, she is the head of the hong kong health department.
she has been dealing with outbreaks like bird flu and sars. shouldn't she have been handling this better? she was the one who turned down ebola vaccines. >> all of the experts got it wrong. i don't know of one person who really got it right. instead of focusing on vaccines, we have to focus on what we can do. the big thing that we can do is basic health measures. when i was in the white house, one of the things we did was emphasize building up the health care infrastructure for sustainable response. this is a very important element. hospitals, facilities, trained personnel are going to be the key to getting this under control. it is going to take time and several billions of dollars. , this isrger context
like one penny and $100 of the american gdp. very small amount of money for us. it is very important to these countries. we need to really get this arms -- our arms around this. we don't want the new democracies to collapse. governments can be very fragile under these stresses. >> it is moving so quickly. it is going to be difficult to build capacity. we are going to have to look at some difficult things. getting protective gear for people at home. how do you quarantine people who have the disease or people who have died from it from people who are still healthy? it is going to require very difficult choices. >> 3000 u.s. troops are being sent. how safe are they? >> i don't think the problem is
exposure to them. they have been well-trained. gloves, masks, gowns and they understand the situation. issue was whether 3000 in the end is going to be enough. the other countries have limited health personnel to begin with and a lot of those health personnel have been exposed and died. to be ao turns out problem. it is not like these countries have a big pool of health care workers. >> what number should we trust? it is all over the place. the cdc's worse scenario is that if we do not respond in the next few months and that number is for january. they show it doubling in liberia. that is a scary thought. they are urging action sooner rather than later. we do need to get our arms
around it and begin to contain it. calculations, they say for every 10,000 people, 25,000 people contracted the disease. >> this is not just a health crisis, it is also potentially a national security crisis. we are worried about weak and failing states. if this were to thread to nigeria -- spread to nigeria, this could also be a strategic nightmare. it makes the case for a large-scale intervention. joining ushaass along with easy keeley manual, emanuel,s -- ezekiel our guest hosts for the hour. >> narendra modi is visiting the white house. how should we call this guy? a real rock star in new york
>> good morning, everyone. "bloomberg surveillance." i'm tom keene. with me, scarlet fu and adam johnson. futures are negative. dow futures negative, as well. >> morning must listen. explaining why the u.s. is leading the fight against islamic state. >> we are the indispensable nation. we have capacity no one else has.
our military is the best in the history of the world. when trouble comes up anywhere in the world, they don't call beijing, they don't call moscow, they call us. that is the deal. >> that is the deal. this is a very different tone from the president then we have heard for several months. richard haass, did he have to pivot starting the week ago given the all-time low approval rating? >> it is not just that. happening inngs the world i can directly affect the national security and prosperity of the united states. emmanuel, you are qualified for this. how exhausted is this presidency? >> anytime you are running for six-eight years, it gets tiring.
almost everyone of his vacations has been interrupted from the start. >> by his daughters? [laughter] >> not by his daughters. the first summer vacation, the death of senator kennedy. then the crisis in the winter vacation of 2009. it is very hard to run. richard is exactly right. we have to lead, but we shouldn't be throwing about leading. we need allies. we cannot do this alone. the american public needs to understand that these are important crises. ♪
all right, good morning. this is "bloomberg surveillance." i'm scarlet fu with tom keene and adam johnson. a live shot of venice, italy where a certain george clooney will have his civil ceremony. smith from our staff just flew in. [laughter] mean tom has moved up on the most eligible list? [laughter] us if you think so. [laughter] peter cook will save us right
now. thank you. india is the land of red tape. over 20,000i drew indians at madison square garden. it was an extraordinary event. he said he would talk about revolutionizing visa requirements. peter cook joins us from washington right now. a lot going on in washington. this is really front and center. why does the prime minister not get a state dinner? >> i think this is a relationship in evolution. this is an effort to reinvigorate the relationship. 2009 wase dinner in the first one of the obama administration and yet the relationship drifted apart after that. this is an effort to
reinvigorated, to restart it, if you will. president obama is tapping into the popularity of narendra modi. is the star of the moment. what can the president give india? would likething he to give india or help give india is more investment, american investment. that is going to be the big focus. there are going to be a couple of deals announced, in terms of u.s. businesses, opportunities to get them to india. it is on the flipside of that. india breaking down issues of bureaucracy, barriers to indian investment. lloyd blank find from goldman sachs, top executives from pepsi, from boeing. this is a business trip. i would not expect major deals announced today. this is an opportunity for something down the road and an
effort by the united states militaryo help with hardware and that sort of thing going forward. those will be some of the opportunities through the course of the dinner. narendra modi will not be eating because he is fasting right now. >> yes he will. immigration is an issue. can you speak to that? it was a big focus of the speech at madison square garden. make the process easier for indian americans to return home. this is a big issue for the ex-pat community. this is something he touched on. he reached out directly to those indian americans who are here. 3 million or so. he made a huge effort to try to reach out to them, to try to sell them on what he is doing back home.
there have been questions with the indian economy, what has been happening. i think the overwhelming support he got in india at election time, i think we saw some of it represented here. >> with us today, ezekiel emanuel, an architect of the affordable care act, and richard haass with us as well. fit in the newa world order? >> it is a great question. india, how are they going to define itself in asia and the world? so far, it has been quite reticent. asre are a lot of questions to what is india's strategic sense of itself? how was it going to do with china? how is it going to position itself? , when he was prime
minister, he focused on making it more economically powerful so it could use that hat and he was pretty effectively as the prime minister and that is why he won. people want the economy to finally take a left off with all of their potential. >> indian economic growth is nearly 6%. the real question is whether he is able to take the further steps, to reduce bureaucracy, reduce corruption, modernize infrastructure, things like that. what has not changed is their health system. it is medieval. they really have two health systems. they have the public health system where you have to wait and it is free. they are proud of the freeness, but you pay in time. there is a flourishing private
health care system with a apollo and other systems that give world-class care and they have some innovations that we can learn from. they have these focused factories on doing cataract surgery, for example, one after another without doctors and it has done very well. they also have heart surgery for very cheap and they are planning to export that. it is done very efficiently and very cheaply. >> what about the progress on introducing health to rural parts of india? >> my daughter took some time off and was working on toilets. she was using micro-finance to finance toilets. this is a major issue for sanitation and for women who get sexually assaulted when they are using the facilities and things like that. this is part of the infrastructure. the sewage system making life
there much more like modern life for the 700 million poor indians. one of the things narendra modi has promised is that he is not going to be about expanding business only for the top, but he wants to expand so that the bottom rises. for the world, india has more poor people than anyone else. this massive divide in health care. >> it is a big issue for women. the sexual assault. fasting andmodi meeting with pepsi and coke to reduce sugary drinks. emmanuel,antify dr. how big the problem is diabetes? can you try that? >> in our country, it has been a
huge problem. the first lady changed the national conversation. 2009, theme in country where of the city. has changedampaign the conversation. you have seen shifts 200. -- to water. i don't like to quantify the cost. typically quantification's of $200 billion are very narrow i do not take into account much wider things like having to change airplane seats or the waring out of various items because of an increase in weight. the systemwide effective obesity is huge. it has been 30 years in the making, this problem. going to be two
decades in the unmaking. we are seeing early signs. ,ore americans are aware especially among young kids, we are seeing drops in school. that is an important point. india, the growth of these noncommunicable diseases. smoking and tobacco related cancers and developing countries. that is going to be a big explosion if we don't get our arms around it. the renter modi is very keen on getting into this now -- narendra modi is very keen on getting into this now. reports,were speculation of the company going private. is it -- tip co. shares have been suspended from trading because of this announcement. that is a 26% premium.
to jeffmewhat regularly katzenberg. we may have solved a little bit of a mystery. havedo you do when you millions of dollars in alibaba cash? , 2 take some of that money billion dollars or $3 billion and you spend it on dreamworks. this is may -- maybe what we have at work. why does he want dreamworks? he own sprint. he wants to increase subscribers. content.by buying more by exclusive content coming up from dreamworks. the problem is that this is a variety piece on dreamworks. they have shrek as their cover picture. that is a couple of years ago. that is over 10 years ago.
[laughter] that tells you how long it has been since they have had a really big hit. dreamworks is still associated with "shrek." to be softbank is able inject more energy into the company. >> he did not get anywhere in his effort to merge sprint and t-mobile. >> they shut him down. you have to have more providers. they said. >> now he is focused on sprint. i need to increase my subscribers. >> he is putting dreamworks out of their misery, isn't that the backstory? not had free cash flow since "shrek." the thing is a train wreck. the thing is a train wreck. tandemstock moves in with how well he movie does over
the weekend. that is a casino, that is gambling. >> advertising week kicks off this week. -- everyone at advertising week is going to be talking about digital. dreamworks bought awesomeness tv. everybody under the age of 18 might know awesomeness tv. >> shockingly, i'm not under 18. [laughter] it is humorous content geared towards younger people. >> dreamworks trying to reconnect back to the millennial's. they had to go out and buy that content. it has been an underperformer. this might be the kick that they need. retailer.o have a big >> that's right. the former walmart ceo, bill us aboutll be joining
the kick that the u.s. needs in jobs. we will be speaking with him a little bit later. it is jobs week. >> "betty liu in the loop." of the day.question last question to get in your answers. what is the most underestimated global conflict? we were debating protests in hong kong. ebola. >> i would worry most about asia, japan, china, or possibly pakistan. >> that is a long list. tweet us at @bsurveillance. ♪
and adam johnson. >> sanctions are biting in russia. foreign minister served a with olivia sterns. >> -- spoke with olivia sterns. >> things happen. not just in russia, but another countries as well. i am not nervous about this. we would not cry uncle, i can assure you. we will find a way to substitute for the loss. >> predictable words from the foreign minister for russia. with us from the council on foreign relations. more dead in eastern ukraine. >> on the other hand, there are also some signals coming from russia that they just may be be interested in some kind of a diplomatic arrangement. last week, we had the prime minister of ukraine at the council of foreign relations and
he was very sober about what is going on and their needs and their difficulties. >> do we just give up on crimea? >> i think crimea for the shouldable future, we focus on eastern ukraine and ukraine more broadly. i think one of the positions that has to be made soon as whether we give ukraine the ability to defend themselves. many people say it is a good idea. some people are skeptical. this is the next big decision the president has to make. nato made that thrust eastward after 1989. is the real outcome that we pull back? >> absolutely not. russia is not going to challenge any of the countries in nato. ukraine was obviously outside. it is in that gray area with united states interest, but no legal protection. a i want to broaden this out
little bit. the president was here in new york. what did he accomplish during his trip? >> it was to send to messages. to build a little bit more support for the anti-isis coalition. >> did he get that done? >> very little. we need ground support in syria. the president also want to send a message that the united states are back. stop questioning american reliability, that message. you will see a slightly more active united states. heheard it in his voice >> clearlyto harriet -- he pivoted. why is it that english parliamentarians were debating going to syria? why would a country feel it needs permission? the british parliament, the
strain of isolationism is quite powerful. they want assad to invite the allies in. seeing moreasically broadly a real reticence in europe to get involved in messy military situations. this leaves the united states in a terrible situation where you have the europeans saying they are not going to get involved. who do we turn to? >> we are going to turn to richard haass for our agenda as well. >> the world order. s was speakings with the 92nd -- secretary kissinger at the 90 second wire. >> what would be the rules?
can you sell it to two groups? we don't have a consensus in this country. what american foreign-policy out to be about. been going ons for literally 100 years in this country. we have not settled it. look at the islamic world. can you get them to sign-up for rules of international relations that we can live by? >> what an incredible distinction, this coalition versus any others. here is what is on my agenda. deflator.pce it is pretty technical, but it matters. this comes out at 8:30. the estimate of 1.4% is lower. the fed is targeting 2%. we are nowhere near there. >> we will continue to monitor protests in hong kong. governments have -- the
government has canceled the fireworks. that is an implicit announcement protests will continue. what is the most underrated global conflict? the massive spread of ebola. tom, did you tweet in? >> no. haass, and you believe this is the big one? -- asiasia upon's upon's economic growth increase without the rise of a military one? >> well done. water resources. aass.answer says h >> the new york yankees. [laughter] >> that ship has sailed.
>> good morning. 29th.monday, september -- what a show we have lined up for you this morning. three industry giants joining me today. on how the u.s. cities should deal with presence of broad. then, bill simon will be running the onset to talk about the changing retail landscape in hiring and dealing with attackers. in real estate, a giant in the will joinliam rudin me. what is going on in his apartment complex? but first, here's a look at our top headlines. tried to turn dreamworks into a mini